Financial Services Compensation Scheme – FSCS

The Financial Services Compensation Scheme (FSCS) provides protection for consumers when authorised financial services firms fail. It is the UK’s statutory deposit insurance and investment compensation scheme. It can compensate customers if a firm has stopped trading. The FSCS covers business conducted by firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). FSCS rules are made by the FCA: the body to which it is also accountable. The scheme was initiated under the Financial Services and Markets Act 2000 and became active on 1 December 2001.